Maruti IPO May Garner Rs 700 Cr

New Delhi, January 31: | Updated: Feb 1 2003, 05:30am hrs
The government expects to garner about Rs 700 crore from the ensuing public offering in Maruti Udyog Ltd (MUL) in this fiscal, which would take the total divestment proceeds to about Rs 3,700 crore.

I cant give a timetable. But I feel in the current financial year we can complete only Maruti, disinvestment secretary Pradeep Baijal said here on Friday. He was responding to the queries of reporters on the sidelines of a seminar organised by the All India Management Association.

Mr Baijal said the government had already mopped up Rs 1,000 crore from the first phase of disinvestment in MUL as control premium from Suzuki Motor Corporation (SMC), the 50 per cent partner in MUL. The premium was for renouncing its shares in the forthcoming rights issue. The government will get at least Rs 1,400 crore more in the next stage, which is that of public sale of government equity in MUL.

The public issue is the second stage of disinvestment in MUL. SMC has agreed to give an underwriting of Rs 2,300 a share as part of the agreement, and the government has decided to offer 25 per cent equity by March 2003. The remaining government stake would be sold in the next financial year.

The expected Rs 1,400 crore would be spread over the next two stages of disinvestment in MUL, Mr Baijal said, adding that the public sale of government equity can fetch Rs 700-800 crore.

The disinvestment realisation in the current fiscal so far is a little more than Rs 3,000 crore. Mr Baijal said the disinvestment ministry expects to conclude MUL stake sale by March 17.